Hilton Head buyers and sellers have been behaving like turtles lately. Don’t get me wrong, I know they are smart, it’s just that they are moving too slow. Sure enough, sooner or later they will get there, but if they move too slow they will lose both time and money. All it takes is a little hope, courage and a miracle
Turtle power for this market
- Sellers need to factor in the winter carry before they counter their next offer especially if they are not living in it. Chances are the winter carry is larger than meeting the buyer in the middle.
- Buyers need to factor in the prices and negotiations that are in their favor. Often sellers will adjust because of the “winter carry” and in the spring all bets are off as a new year starts the confidence rolling again.
- Sellers need to consider the known vs. the unknown as it applies to capital gains taxes and administrations. Taxes could impact values from 10-20% in 2013. These costs will be far greater than the middle ground that can be reached with a buyer today. If the Bush Era Tax is not extended, starting next year, the maximum rate on long-term gains is scheduled to increase to 20% (or 18% on gains from assets acquired after Dec. 31, 2000, and held for over five years), and the maximum rate on dividends will skyrocket to a whopping 39.6%. This could be a 33% tax increase.
- Buyers need to factor in selection. Today selection offers location, price and condition to buyers. Next year buyers still may be able to buy a good location that is in nice condition, but chances are they will have to pay more for it. Meeting the seller in the middle this year may be far less than trying to find a replacement next year.
- The majority of buyers and sellers will not delay their decisions because of the election. A recent poll showed over 75% polled would not wait for the elections to buy or sell property. If you are a buyer why would you let all the others get a jump on you? After all their not waiting
- Buyers and/or sellers may be interested in having tax write offs in the year 2012. If you are not familiar with these write offs, please click here.
- Buyers need to remember the story of my friend and engineer, Ron. He took 3 years trying to decide if timing and price were right and finally bought a place. Read about Ron by clicking here.
Fence Sittin Costs Everyone Time and Money
What both buyers and sellers need to know is that fence sitting will cost them time and money. Don’t get mad at your agent next year if you end up spending more to sell or buy a property. If you need an additional push, just let us know. I will not let a buyer or seller lose money on my watch and will happy to push or pull you to reality. Thank you.